Isabelle Hudon, chief executive of the Business Development Bank of Canada and Canada’s lead negotiator for the initiative, said Ottawa was working toward unveiling the founding members of the Defence, Security and Resilience Bank, or DSRB, by the end of the summit.
“Our current objective is to use the NATO summit as the deadline and announce the list of founding countries,” Hudon was quoted as saying.
Canadian Prime Minister Mark Carney has promoted the bank as part of a broader push to build cooperation among middle powers amid what he has described as the erosion of the U.S.-led global order.
The proposed bank would seek to raise up to 100 billion pounds ($134 billion) in low-cost financing to help participating countries strengthen their defense capabilities.
Hudon said most of the initial members, apart from Canada, were expected to be European countries, though she declined to identify them.
She cautioned that the announcement could still be delayed depending on the outcome of final negotiations over issues including capital commitments. However, she said the initiative was gaining momentum.
According to Hudon, Carney has emphasized that the bank should begin with countries ready to join rather than seek a perfect arrangement from the outset, while leaving the door open for additional members.
The project could nevertheless face uncertainty unless it secures strong support from major economies whose participation would be important for obtaining the highest possible credit rating.
Hudon said Canada had held “productive discussions” with South Korea and assessed the chances of Seoul joining at about 50-50.
She added that no other Group of Seven country appeared close to joining at this stage.
South Korea’s Ministry of Economy and Finance said it was reviewing Canada’s proposal. The Canadian Finance Ministry did not immediately respond to a request for comment, according to Reuters.
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